Yaw Appiah Lartey, Partner for Financial Advisory at Deloitte Ghana, has proposed the adoption of an independently administered Debt Cost and Sustainability Model for the Ghanaian economy.
He explained that the model will serve as a guide for the country in the event it seeks to borrow funds from the Eurobond market adding that it would have to be accessed and stress-tested to understand whether the country can accommodate any level of borrowing.
“I have some seen some developments of this kind particularly in the Africa region with some countries being forced to develop the Debt Cost and Sustainability Model especially in South Africa and Gambia and that is something Ghana has to be thinking about adopting.”
“The model has to be independently managed without any form of influence from the government level.”
Yaw Appiah Lartey said this at the 2023 Deloitte Economic Dialogue: Pre-Mid-Year Budget Discussion held in Accra on July 20.
Due to Ghana’s increasing public and external debt stock, the country has been shut out from the international capital market for borrowing. The move has subsequently resulted in government’s inability to finance some of its projects while keeping the economy afloat.
The inability to access Eurobond markets forced Ghana to seek financial bailout assistance from the International Monetary Fund for $3 billion under an Extended Credit Facility which was approved in May this year.
MA/NOQ
